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The city's Department of Business Affairs and Consumer Protection on Friday announced a program to help cab companies buy hybrid and alternative fuel vehicles.

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The plan is designed to provide passengers with trips in modern and environmentally-sustainable vehicles and help the city move closer to reaching carbon emission goals set out in the Chicago Climate Action Plan.

"Alternative fuel and hybrid taxis provide numerous benefits including lower fuel costs for drivers and improved air quality," said the department's commissioner, Norma Reyes, in a press release announcing the program.

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The program will use $1 million in funding from a Clean Cities grant through the federal stimulus program to reimburse up to a set amount the cost of certain hybrid and alternative fuel vehicles, the release said.

Hybrids can be reimbursed for $2,000, the maximum allowed by the federal government under the program. CNG or propane-powered vehicles can be reimbursed for up to 100 percent of the implemental cost, up to $14,000.